Industry missing out on financial benefits of accreditation

The SA airfreight industry appears to be doing little to take advantage of the “green” status accorded to South Africa under the EU’s ACC3 air cargo security regime which became effective on July 1. “For the industry to take full advantage of this status,” David Alexander, GM of compliance services at Professional Cargo Security, told FTW, “it needs to fully comply with SA’s Part 108 security rulings. And the members should all be known consignors or regulated agents.” This, he added, would prevent the delays to air cargo that occur when shipments originate with non-compliant sources, and need to be X-rayed and cleared by a third party body before the carriers will accept them. But according to Alexander, the number of 108 accredited businesses has actually been on the decline. “For example,” he said, “the number of known consignors was 89 in 2009, but is now only 11.” That is completely the wrong way round. And it is odd, he added, when the financial benefits far exceed the cost of being 108 accredited. “It puzzles me how people don’t recognise the value of being accredited/ known,” said Alexander. “There is a large financial benefit in being compliant and savings to be made in cutting the delays in the supply chain.” He pointed out that air cargo from a non-accredited party runs at around 30-75 cents a kilogram, but for accredited it is no more than 25c. Being accredited also prevents the delays to air cargo that occur when shipments originate with non-compliant sources, and need to be X-rayed and cleared by a third party body. The problem is that the security systems tend to be sold on just that – security. Said Alexander: “It is pointed out that the more who participate in these security regimes, the more secure the supply chain becomes. “Security is not a sexy sell. But say ‘money saving’ and eyes light up. “We need a strategy to reinforce this perception. Never mind security, just think of the money savings.” INSERT 1 89 The number of known consignors in 2009 INSERT 2 11 Known consignors in 2014.